FYI
["We'll own the assets and lease them back to Laidlaw at closing," said John Halle, president of HH Capital]
I have PDF is anyone want one, just send me a PM. should be on the web
Laidlaw in biomass deal
by Christine Idzelis Posted 04:15 EST, 12, May 2008
Biomass power plant developer Laidlaw Energy Group Inc. said Monday, May 12, it agreed to buy the assets
of the former Fraser Papers pulp mill in New Hampshire from North American Dismantling Corp. and will
convert the mill into a biomass plant in a deal valued at $100 million.
HH Capital Advisors LLC is investing $100 million of debt and equity to fully finance the purchase of the assets
and back the Berlin, N.H.-based mill's conversion into a biomass-to-energy plant.
"We'll own the assets and lease them back to Laidlaw at closing," said John Halle, president of HH Capital, a
North Hampton, N.H., investment boutique that targets power and infrastructure projects.
It will be among the largest biomass-energy facilities in the U.S., generating 60 megawatts of renewable energy
to the New England power grid, according to Michael Bartoszek, Laidlaw's president and CEO.
As part of the sales leaseback agreement with HH Capital, Laidlaw Berlin BioPower LLC will run the plant, which
is expected to burn more than 700,000 tons of clean wood chips per year.
In the Northeast, wood chips cost about $30 a ton, said Halle, much less than in the West, where the price runs
as high as $90 a ton.
And there's plenty of woods in New Hampshire, which is about 87% forested, according to Bartoszek.
Known as "the city that trees built," Berlin has been devastated by the shutting down of its paper and pulp mills,
said Halle.
North American Dismantling purchased the 130-acre paper mill from Canada's Fraser Papers Inc. in 2006,
looking to extract value from scrap metal on site, said Bartoszek.
Laidlaw, seeing the mill could be readily converted into a biomass facility, asked the demolition company to
spare some of the assets, he said.
In early 2007, the company ran a limited sales process in which Laidlaw "beat out" interested buyers Duke
Energy Corp. and NRG Energy Inc., he added.
New York-based Laidlaw Energy develops independent power plants fueled by renewable sources of energy,
particularly biomass. It trades over the counter under the ticker LLEG.
Closing of the Berlin paper mill deal is "imminent," said Halle, though the agreement provides up to 90 days for
completion.
